We have completed 15 days since I started this investment idea. During this period we have completed 10 market days. An important part of tracking an Investment or Trading position is that a lot of emotional obstacles that you will encounter from the time you enter into a position until you exit. You do not know what is going inside your Brain. You might agree with me when I say that our biggest enemy is our mind. It is the mind that will cheat on you, betray you, discourage you, scare you, bring fear and greed into you more than others. You are not your mind. Mind is only a body part in you. so you need to own it and take control of it. How do you do that when it comes to your Investing or Trading Journey? by controlling your mind. How? just write down the present state of the position. Before moving into a position you write all the conditions, rules and strategies, and keep updating frequently. It could be every week, month,quarter, six months or every year. The more you update the more successful you will be. If capital markets is your livelihood, updating daily will be a good idea.
During the week ending 20th Dec '19 we added 15000 shares into the position. The present holding therefore is 30000 shares at an average of 98.19. One of the major developments that took place during the week is the moratorium the Government wanted the banks to give to their borrowers upto Rs. 300 million. So for me this is an interesting event. Why? There will be those who would sell below, arguing that this decision will be negative for Banks. I personally do not think so. But that is my opinion. That's why I would wait like a vulture till they sell. This strategy is telling me to focus on collecting shares at or below Rs. 100/=. So as long as the price is below that I will keep on buying, as per the plan. Because I respect it. I'm committed to it. I also believe that this counter is trading at historical bargains. I also believe that our economy is going to do better and that will be Stock positive. As such one of the best stocks in the market is COMB. So as long as the price is below 100.00 I will collect based on the plan. Anytime it is over 100.00 accumulation will stop and wait for the exit. That will also be based on the rule given in the strategy.
Please note that this is a strategy and I'm showing it off for the reader to understand the importance of having a strategy to move in to a position of share ownership. I encourage you who is reading this to take note of the various points explained to help you to be consistent and succeed in your investment or trading activities.
Chart with a new update is given below:
Update 1 as at : 15.12.2019
On the 7th of December I started this post on Commercial Bank. Now it is 9 days old, and have completed 5 market days as Wednesday the 11th was a Poya Day. During the short week , I covered 10,000 shares, 5000 each on Monday and Friday. as such the present status is given in the chart below:
I would like to stress that the Name of the Strategy is STOCK ACCUMULATION. This is not a strategy that many would agree with. Reason is that the Buy and Sell Rules are so basic, and one might think that it's too good to be true. Yes updating a strategy for a stock that has a lot of negative news is so hard. Basically I am putting my imagination on the line. I myself feel stupid for starting this. But that's perfectly alright. Because when a stock is bleeding and all are running for shelter, and the blood is seeping through the prices almost daily, who would want to report? But the key point here is that this counter is one of the Best and Strong Counters in the Sri Lankan Market. Also it is one of the important stocks if we believe in the upward trend in the ASI. It is also the only counter that has been in many major Emerging Market indices, always. Also it is well managed, and has a rock solid brand name.
Let's see how this is unfolding. So far we have collected 15000 shares at a cost of 98.56. I am aware of the fact that someone would argue that this is all hypothetical, and you can't do it in reality. Yes the amount of shares given here may be so, but this is done in real time with smaller volumes. The value could be 5, 50, 500 or 5000 but it is a chart I am plotting every day in the real market, as I firmly believe that any thing that an investor or a trader should do must happen in reality, than just back testing by looking at the past data. Back testing a strategy is quite normal, yet tracking it real time with real trades is not. Let's come back again after a week and see where we stand on this stock.
If I may add another point here, I must emphasize that the number of shares in this strategy must be in line with the amount of risk you can bare. As you can buy volumes from 1 share to millions of shares, you have to decide on the amount of shares that you can comfortably collect as long as you need to accumulate. That is a key criteria in this Strategy.
First post as Reported on : 7.12.2019
There are zillions of ways to buy stocks. But if you can have a simple way to do so, your investment adventure will be rewarding beyond imagination. Let's see how a simple strategy is going to work real time. The commencement of this strategy was from yesterday the 6th of December 2019. The details of the Strategy and the plan is as follows:
Strategy - Stock Accumulation
Counter - COMB
Buying Rule: Buy only if the stock is below 100.00
Intervals of Accumulation: 3 times a week. i.e. Mon,Wed and Fri.
Start Date: 06.12.2019
Sell Rule: only if the P/E ratio is 9.8, OR the ROI is above 50%
Note: the ROI mentioned is without cash and scrip dividends OR splits (All these are added returns)
Trade is still open as at:07.12.2019
1st Purchase: 06.12.2019 - 5000@98
Given below is the Daily chart of COMB. We shall be tracking the progress of accumulation and performance of the chart frequently. The chart will show how the accumulation is happening throughout till the time of stopping the accumulation to the time the prices move to the target.
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